The next step

http www topten info uploads file energy 20labelling 20directive 20may 202010 pdf

[]

Energy rating labels

What’s changed?

The European Parliament has updated and extended the scope of its Energy Labelling Directive. This introduced the simple energy label for household appliances such as fridges, freezers and washing machines (see The next step). The recast legislation will extend its scope to also cover products in the commercial and industrial sectors. So now the likes of heat pumps, commercial refrigerators and air conditioning units will have to carry an energy label.

Note. The scope of the new rules is also likely to extend to other consumer goods, such as televisions, water heaters and boilers.

So why are labels necessary?

Energy labels were introduced back in 1992 and have become a favourite instrument in Europe for encouraging manufacturers to improve the energy efficiency performance of their products. The simple colour-coded A-G system offers consumers a clear guide to the likely energy consumption of what they are buying, allowing them to make a better informed purchasing decision. Dark green represents high efficiency; red is the least efficient. The EU hopes that extending the labels to more products will help it reach its target of improving energy efficiency by 20%. It aims to do this by 2020. It’s clear that labelling works - just 10% of washing machines and dishwashers sold in the EU in 1998 were class A rated. By 2005, this had risen to almost 90%.

New labels

As well as the A-G labels, three new classes are going to be available for products. The new A+, A++ and A+++ labels are designed for products whose performance goes “beyond A”.

Is this helpful?

Not according to the British Retail Consortium (BRC). It says the new labels are confusing, especially given that the standard A-G ratings will be maintained across the EU for products such as cars, buildings and lightbulbs.

Tip. Although the BRC has reservations, we think that it’s actually quite a simple and useful tool. Rather than having to rely upon the sales patter from the supplier, you can use the label to identify how good a product is and compare it to a similar one. So if you’re in the market for new equipment and it has a label, use the information on it to identify potential running costs etc.

When is this happening?

As we’ve said, many products already carry these labels but the new rules are yet to take effect. Although the extension to the Directive has already been formally adopted by the European Parliament, Member States have twelve months to transpose it into national legislation.

Tip. If you’re buying equipment now, you still might have to rely on the supplier to provide information about its energy performance. However, if the item is energy-efficient, you should expect suppliers to be falling over themselves to tell you how “green” it is.

For further information on the updated Energy Labelling Directive, visit http://environment.indicator.co.uk (EN 05.02.07).